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What is Gym Equipment Financing?

Gym equipment financing is the name given to loans designed to help fund the initial purchase of exercise equipment for gym owners. The entry cost of opening up a gym is one of the largest deterrents entrepreneurs encounter when thinking about starting a small fitness business, and the majority of the price tag boils down to equipment. With even the more rudimentary machines costing upwards of $1,000, it’s just not practical or good business sense to start a gym out of your own pocket. Gym equipment financing has become the industry standard to help small gyms, upstarts and franchise branches get up off the ground without burning a huge hole in investors’ pockets.

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Rates (%)

Lending companies like Gymsource and Rogue fitness offer entry deals where you don’t pay interest for anywhere between 6-12 months, but on deals like these, you can expect to see a very high APR, sometimes as high as 30%. These sites can be great for financing gear if you expect to pay it off short-term, but if you aren’t sure about your gym’s ability to cover the steep repayments, it may not be the best option for you.  Financiers like LeaseProcess and Rigquipment offer longer-term solutions with flexible payment options that allow you to pay more as your membership increases.  Interest rates from these financers tend to be lower, starting around 13%.

Credit Requirements

Requirements differ between financiers but, in general, you are going to need a credit score of at least 620 to qualify. You will also be required to submit your business history, including bank statements and membership history, if available. Keep in mind that although some financiers require you to have been in business for 6 or more months, lenders like Rigquipment have no minimum time requirements and are open to offering loans to new businesses.

If you have no business financial history you will be required to submit at least two years of your own financial history. You may also have to sign a personal financial guarantee, making you personally responsible for repaying the loan. Before being approved for any financing you will also have to submit a quote from the equipment vendor so the financer can verify the amount you are requesting. Be sure to have all your documentation sorted out before applying to increase the chance of being quickly approved for financing.

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